Maruti Suzuki India Ltd Chairman RC Bhargava struck a steady note on demand, even as concerns around rising fuel prices persist. Speaking after the company's earnings, he said past trends suggest that increases in petrol and diesel prices have not had a lasting impact on car demand in India.
While fuel prices remain a key monitorable, Bhargava indicated that demand fundamentals remain intact, with the company continuing to expect double-digit growth in volumes for the current financial year. He reiterated the company's growth outlook, adding, “We are expecting double digit growth 10% growth this year also yes.”
A key factor influencing recent registration trends is supply, not demand. "When there is a waiting list of our 190,000 cars, customers are reluctant to registered and then say, we'll have to wait one month or one and a half months or more than that to get their cars." This supply-side constraint, rather than any slowdown in interest, explains the recent moderation in monthly registration data.
On the cost front, the outlook remains fluid. While commodity prices had already exerted pressure last year — pushing up material costs as a share of sales — the full impact of recent geopolitical tensions is yet to play out.
ALSO READ: Maruti Suzuki Declares Bumper Dividend Of Rs 140/Share; Check Record Date, Payout Details
Bhargava noted that factors such as global commodity trends, exchange rates and broader market conditions will be considered before any pricing decisions are taken.
On input costs and pricing decisions, Bhargava maintained that the situation is still evolving. "We are considering the whole matter. We haven't taken any decisions yet. But we have to took all factors into account as to the impact on prices, exchange rates, what should happen and then we will take a decision on what should be the price."
He also noted that geopolitical effects are yet to fully reflect in costs, adding that "The war impact has still not been fully felt at all."
Maruti also expects exports to remain broadly stable, even as certain regions face disruption, saying "We expect that the total exports this year will be very similar to what we exported in 25-26 for about 4 and 1/2 lakhs."
Bhargava also addressed the decline in other income, attributing it to mark-to-market adjustments on investments rather than any fundamental loss.
With most investments in debt instruments, rising yields have led to a temporary dip in valuations — a fluctuation that could reverse depending on interest rate movements.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
